When financial hardship strikes, it can be difficult to know where to turn. Whether the hardship is the result of job loss, medical bills, or even factors like inflation or interest rates, it’s important to know that there are options available to help you get back on your feet.
According to U.S. News, there are a number of adjustment that retirees can make to their financial plans to help them recover from financial hardship.
1. Create an Emergency Fund
One of the best ways to prepare for financial hardship is to create an emergency fund. This fund can help cover unexpected expenses like medical bills or home repairs. Ideally, your emergency fund should be equal to three to six months of living expenses.
2. Consider a Reverse Mortgage
In cases where financial hardship is the result of job loss or a reduction in income, a reverse mortgage may be an option to consider. This allows retirees to tap into the equity in their home without having to make monthly mortgage payments.
3. Talk to a Financial Advisor
Of course, one of the best ways to prepare for financial hardship is to talk to a financial advisor. A financial advisor can help you create a financial plan that includes an emergency fund and other strategies to help you weather financial hardship.
The Seniors Center is here to help retirees understand their options and make the best choices for their financial future. Be sure to follow us on Twitter and Facebook to learn more about our mission!